India’s Top Mutual Fund Manager Gains 6.45 per cent as Q3 Profit Surges 31 per cent ; Optimistic Outlook Ahead
AMC’s Profit Soars 31 per cent , Revenue Jumps 39 per cent YoY; Market Share stands at 13.2 per cent in individual monthly average AUM in December 2024
HDFC Asset Management Company (HDFC AMC), one of India's largest mutual fund managers, witnessed its stock surge 6.45 per cent to a day's high of Rs 4,112.9 before closing at Rs 4,041 with a gain of 4.59 per cent on the BSE in Wednesday’s trade. The rally was driven by strong Q3 earnings, reflecting significant growth in assets under management (AUM), revenue, and profit.
In Q3 FY25, HDFC AMC reported a 31 per cent jump in consolidated net profit at Rs 641 crore, compared to Rs 488 crore in the year-ago period. The company's revenue from operations stood at Rs 935 crore, marking a 39 per cent YoY increase from Rs 671 crore.
Total income, which includes other income of Rs 93.09 crore, rose to Rs 1,028 crore, up from Rs 814.18 crore in Q3 FY24. On a quarter-on-quarter (QoQ) basis, profit after tax (PAT) increased by 11 per cent , from Rs 577 crore in Q2 FY25.
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Total expenses for Q3 FY25 stood at Rs 187.1 crore, up 7 per cent YoY. The company’s strong profit growth was attributed to rationalized commission payouts and controlled operating costs.
Assets Under Management (AUM)
- Quarterly Average AUM (QAAUM): Rs 7,874 billion
- Market Share: 11.5 per cent in the mutual fund industry
- Equity-Oriented Funds: Rs 4,782 billion QAAUM with a 12.8 per cent market share
- Closing AUM: Rs 7,764 billion
HDFC AMC remains a preferred choice for individual investors, holding a 13.2 per cent market share of individual monthly average AUM in December 2024.
For the nine-month period ending December 31, 2024, the company’s operating profit stood at Rs 2,015 crore, compared to Rs 1,376 crore during the same period in the previous financial year. Profit after tax was Rs 1,822 crore, as against Rs 1,405 crore in the same period corresponding year.
The Indian mutual fund industry is expected to see continued inflows, driven by under-penetration and rising financial awareness. This trend is likely to support healthy AUM growth for HDFC AMC.
The company aims to increase market share in its existing product offerings rather than launching new products. Management expects expenses to grow by 12-15 per cent YoY.
HDFC AMC shares have rallied over 15 per cent in the past year. The company's current market capitalization stands at Rs 86,418 crore. Its stock is trading at a P/E multiple of 36.6, with an earnings per share (EPS) of Rs 110.65.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.